MCDonald's Shareholders Jumping Ship
Over the last six months, nearly 760,000 shares worth some $43 million have been sold. That is alot of McMoney!
A significant amount by any measure, this is roughly a 20% liquidation of the insiders according to Thomson Financial. CEO James Skinner sold 35% of his stake. Gloria Santona, the general counsel, parted with more than half of her shares. Jose Armario, responsible for Canada and Latin America, traded away 80% of his holdings. Are they not confident about the McCafe (iced coffee drinks) or just need some cash?
Until then, rising food prices will pinch margins hard, sales will drag, and free cashflow will be tied up in the coffee fiasco. Maybe shares won’t tumble, but it’s hard to see them going much higher from here.
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